Which of the following is not classified as inventory in the financial statements?
A)Finished goods .
B)Work-in-process .
C)Stores and spares
D)Advance payments made to suppliers for raw materials

Question

Quizplus · Accepted Answer

Advance payments made to suppliers for raw materials are not classified as inventory in the financial statements. Instead, they are typically recorded as prepaid expenses or other current assets until the goods are received, at which point the cost is transferred to inventory.

Which of the Following Is Not Classified as Inventory in the Financial